This chapter examines in a systematic way how different forms of regional monetary cooperation may contribute to reducing macroeconomic volatility and buffer exogenous shocks for developing countries and emerging markets. It divides mechanisms into three categories of regional financial and...

Contents: 1. Introduction / Gerald Epstein -- Part I Capital flows and financial crises -- 2. Financial crises among emerging and developing economies in the modern era: a brief history and some stylized themes / Elissa Braunstein -- 3. Too good to be true: what the Icelandic crisis revealed...